The Decision Making Of Shoes And Clothing Franchising System Can Not Rely Solely On Game Theory.

The business model gives us great inspiration. We do not set up our own factories and do not set our own businesses.

But it has become one of the most valuable sports brands in the world.

Up to now, domestic brands also use this mode of operation. The products are delivered to OEM factories, and through franchisee sales, they focus on product design and brand management.

Although some brands insist on direct pformation and direct camp pformation, they can not deny that the franchise is still a lot of shoes.

Enterprises adhere to the choice.

1, have a clear scope of authorization and make decisions according to the overall operation.

2. Reverse decision area asset allocation according to order quantity.

3, flexible decision-making, strong marginal revenue and marginal cost sensitivity.

4. Strong demand for product structure and self decision of sales plan.

5, headquarters control intentions often through supply price, retail price, rate of return indirect game.

As a basic investment return of franchisees, there is no sufficient reason for the franchisees to persuade the franchisee to fully comply with the macroeconomic regulation and control policy of the headquarters commodity department or the sales department.

The franchisee has constantly mastered more business skills and management skills, and is becoming more and more professional in marketing strategy, ordering strategy, sales skills, shopping guide training, inventory management and so on. Franchisees have no shortage of theoretical and practical experience now.

However, when the franchisee's investment return decreases, it is bound to reduce the investment level, reduce the order quantity and extend the account period.

In order to ensure sales volume, brand headquarters has already increased production volume, quantity and design style.

After the sales volume of the franchising system is facing a bottleneck, even if the brand stabilizes the market through the discount rate and strengthens the confidence of the franchisee, the franchisee will still ask for additional discount or subsidy, or even increase the proportion of the repurchase stock, resulting in a large backlog of stock, and a large area franchisee will get rid of the net.

The fluctuation of franchise system directly results in the decline of brand performance, which has become an important factor inducing the closing of stores.

Franchisees have a clear private property, so they often make decisions based on their own income and cost.

Therefore, most of the franchisees measure the purchase quota, sales volume, sales cycle, sales cost, receivables turnover days, discount rate, sold out rate, single product contribution rate and other performance indicators.

In fact, solving the problem of goods is the key to improving collaboration and maximizing profits.

Franchisees should learn how to analyze product data, store data, purchase and sale data objectively and accurately, and reflect on the matching basis between the initial order and its own market.

If we make decisions only according to personal experience and Excel reports, then we must make up for loopholes in the sales process.

And the headquarters lacks the effective feedback of the franchise system, so the product plan is also needed to reflect.

How to put the most qualified products to the most suitable stores, improve the sales rate, reduce inventory and reduce invalid allocation.